Hilton Grand Vacations Completes $269 Million Term Securitization

Rhea-AI Summary

Hilton Grand Vacations (NYSE:HGV) has successfully completed a $269 million securitization of ownership loans through Hilton Grand Vacations Trust 2022-2. The issued Notes include approximately $153 million of Class A, $73 million of Class B, $26 million of Class C, and $17 million of Class D Notes, with overall interest rates ranging from 4.30% to 8.73%. Proceeds will be used for debt repayment and corporate purposes. Five new investors joined the platform, allowing competitive pricing despite higher benchmark rates.

Positive

• Completed a successful securitization of $269 million, enhancing liquidity.
• Attracted five new investors, reflecting strong market interest.
• Achieved competitive pricing for Notes despite rising benchmark rates.

Negative

• None.

ORLANDO, Fla.--(BUSINESS WIRE)-- Hilton Grand Vacations Inc. (NYSE:HGV) announces today the completion of a $269 million securitization of Hilton Grand Vacations ownership loans through Hilton Grand Vacations Trust 2022-2 (“the Trust”). Four classes of Notes were issued by the Trust, including approximately $153 million of Class A Notes, approximately $73 million of Class B Notes, approximately $26 million of Class C Notes, and approximately $17 million of Class D Notes.

The Class A Notes have an interest rate of 4.30%, the Class B Notes have an interest rate of 4.74%, the Class C Notes have an interest rate of 5.57%, and the Class D Notes have an interest rate of 8.73%, for an overall weighted average interest rate of 4.83% and overall advance rate of 96%.

“We’re pleased with the results of our investor outreach, welcoming five new investors to the platform, allowing us to price well inside a 5% coupon despite higher benchmark rates since our first deal earlier in the year,” said Dan Mathewes, chief financial officer of Hilton Grand Vacations. “The strength of execution and ability to tighten spreads across all classes of notes is testament to the market depth and continued focus on timeshare asset backed collateral.”

Proceeds of the issuance, net of fees, will be used to pay down debt and for other general corporate purposes.

The Notes were offered in a private placement within the U.S. to qualified institutional buyers pursuant to Rule 144A and outside the U.S. in accordance with Regulation S under the Securities Act of 1933, as amended. This press release is an announcement of record only and does not constitute an offer to sell or the solicitation of an offer to buy the Notes, all of which have been sold. The transaction was rated by Standard & Poor’s Financial Services LLC (S&P) and Moody’s Investor Service, Inc (Moody’s).

Important Notice
This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements convey management’s expectations as to the future of HGV, and are based on management’s beliefs, expectations, assumptions and such plans, estimates projections and other information available to management at the time HGV makes such statements. Words such as “may,” “will,” “seeks,” “anticipates,” “believes,” “estimates,” “expects,” “potential,” “goal,” “continues,” “future,” “targets,” “plans,” “predicts,” “intends,” “would,” “should,” “could,” or similar expressions indicate a forward-looking statement; however, not all forward-looking statements include these identifying words. The forward-looking statements contained in this press release include statements related to HGV’s expectations with respect to future operating, financial and business performance and other anticipated future events and expectations that are not historical facts.

These forward-looking statements involve known and unknown risks, uncertainties and other factors, including those that are beyond HGV’s control, that may cause its actual results, performance or achievements to be materially different from the future results. Any one or more of these risks or uncertainties could adversely impact HGV’s operations, revenue, operating profits and margins, key business operational metrics, financial condition and/or credit rating. For a more detailed discussion of these factors see the information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that may update or supplement such disclosure.

HGV’s forward-looking statements speak only as of the date of this communication or as of the date they are made, and HGV disclaims any intent or obligation to update or revise any forward-looking statement made in this communication to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, except as required by law.

About Hilton Grand Vacations Inc.
Hilton Grand Vacations Inc. (NYSE: HGV) is recognized as a leading global timeshare company. With headquarters in Orlando, Florida, Hilton Grand Vacations develops, markets and operates a system of brand-name, high-quality vacation ownership resorts in select vacation destinations. As one of Hilton’s 18 premier brands, Hilton Grand Vacations has a reputation for delivering a consistently exceptional standard of service, and unforgettable vacation experiences for guests and more than 720,000 owners. Membership with the Company provides best-in-class programs, exclusive services and maximum flexibility for our Members around the world. For more information, visit www.hiltongrandvacations.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220811005689/en/

Investor Contact:

Mark Melnyk

407-613-3327

mark.melnyk@hgv.com



Media Contact:

Lauren George

407-613-8431

lauren.george@hgv.com

Source: Hilton Grand Vacations Inc.

FAQ

What is the significance of the $269 million securitization by HGV?

The $269 million securitization strengthens Hilton Grand Vacations' liquidity and provides funds for debt repayment and corporate purposes.

What are the interest rates for the different classes of Notes issued by HGV?

The interest rates for the Notes are Class A at 4.30%, Class B at 4.74%, Class C at 5.57%, and Class D at 8.73%.

How many new investors were attracted in HGV's latest securitization?

HGV welcomed five new investors to its platform in the recent securitization.

What are the intended uses for the proceeds from HGV's securitization?

The proceeds will be used to pay down debt and for other general corporate purposes.

What is the overall weighted average interest rate for the Notes issued by HGV?

The overall weighted average interest rate for the Notes is 4.83%.